The upcoming new year is an excellent opportunity to make decisions and take several steps that will help you achieve financial stability.
New Year – New Opportunity
Most of us see the new year as an opportunity to make and implement new decisions in various areas. Parenting, relationships, sports, and dieting are just a few examples.
At Paamonim, we recommend 5 financial steps worth taking right now as the New Jewish Year begins. Together with Paamonim’s budget management app, you’ll be able to manage your household finances better in the coming year.
1. Recognize the Need to Take Action
Every process of change is based on a decision that this is it – the time has come.
Household economics seems complicated and complex to us, so often, dealing with it gets pushed to the bottom of our to-do list, despite its high importance.
If you feel that money is “slipping through your fingers” and that you’re not really managing your money but rather reacting every time there’s a need – perhaps it’s time to make a brave decision and address what needs attention.
2. Look the Numbers in the Eye
One of the main financial mistakes that occurs in almost every home in Israel is managing based on estimates instead of actual data.
The holiday season is an excellent time to log into your bank app and credit company apps, and check how much things really cost you: What’s the monthly expenditure on food? The cost of the children’s activities? And what’s the monthly expenditure on fuel and parking?
3. Get Organized
Going on a journey requires advance route planning. In this sense, the family budget is your financial map and will help you manage the money you spend, in each and every category.
The family budget should fit your specific family – your desires, aspirations, priorities, and of course, your actual income.
Based on the real data you identified in the previous step, define how much money should be allocated to each expense category: housing, transportation, food, education, entertainment, and more.
Note – the total monthly budget cannot be higher than your total income.
4. Pay Back your Debts
If you have debts from loans you’ve taken (not including the mortgage, if you have one) – now is the time to consolidate and plan how to handle them. Define a monthly repayment amount you can manage and reach an arrangement with all parties
As long as you’re carrying debts, they will continue to burden both your bank account and your peace of mind.
5. Plan ahead
Remember that the goal isn’t just to survive and roll from month to month, but to progress.
Mark financial goals you’d like to achieve this year, or in the coming years, and start saving toward them. A professional course, starting a business, replacing a car, funding children’s education – every family has different aspirations.
The important thing is to mark your goals and work toward achieving them.
L’Shana Tova
